Tag: Europe

Size, weight, thickness and price – Royal Mail opt for complex approach

Posted by | Mar 30, 2005 | |

After consulting customers about a move to Size Based Pricing (SBP) and for
a period Format Pricing during 2003 and 2004, Royal Mail has added further
confusion by now announcing its Pricing in Proportion (PIP) proposals.

Peter Carr, Chairman of Postwatch commenting on the proposals said: “We
understand and support moves by Royal Mail to price products in accordance
with associated costs. It is important that the dominant monopoly service
provider’s products are cost reflective in the UK’s fledgling competitive
market. Otherwise Royal Mail could unfairly subsidise some of its services
to retain market share.

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Eesti Post audited financial results for 2004

Posted by | Mar 29, 2005 | |

The profit of AS Eesti Post exceeded budgetary expectations by one-third. Owing a halt in the increase of costs and greater income from logistics services and universal postal services, the group’s profits grew by 23.1% to MEEK 29.3 compared to the year 2003. According to Jüri Ehasalu, Chairman of the Supervisory Board of AS Eesti Post, the company’s financial results for the previous year are the expected result of the changes made in the company’s management. “I am glad that progress was made both in terms of service
volumes and quality,” said Ehasalu. Peeter Raudsepp, Chairman of the Management Board of AS Eesti Post added that the company’s financial results were very good in a situation where the prices of fuel, electricity and other resources necessary for postal services have gone up substantially and the
company only expected a profit of MEEK 22. “A targeted reduction of management costs and continuing greater sales of express services also play important roles in generating a greater profit.”
P:LibraryPostalAnnual ReportsEesti Post 04.pdf

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New Royal Mail price proposals to incorporate size and format leave 70% of mail unaffected

Posted by | Mar 29, 2005 | |

Royal Mail today published new proposals for pricing mail mainly based on size, which could affect up to 20% of items sent by consumers, and up to 30% of the UK’s total business and consumer mailbag. The changes, which are subject to regulatory approval, would not be introduced until April 2006. They would move postal prices in line with costs by removing some of the hidden cross subsidies funded by high charges to customers sending certain items which are cheaper for postal operators to handle. UK mail prices have historically been set purely on the basis of weight, even though the size and shape of items are what largely determine the costs of collecting, sorting and delivering letters and packets. The new prices would be mainly based on the format of the item being sent.

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Background on Odewald & Cie

Posted by | Mar 29, 2005 | |

Some info re Odewald/Trans-o-flex from Ludwig-Michael Cremer)
Odwald & Cie are a private equity company with several hundreds of
million Euros which should be invested primarily in logistics
providers. The founder and chief of the company, Dr. Jens Odewald, has
been a former Logistics Chief of Kaufhof. He and his wife are fans and
friends of former German chancler Helmut Kohl and have been the largest
sponsors of Kohl when he collected money to pay the fine, his party was
filed because of illegal fund raising through Kohl himself. NB: Odewald
was the guy who brought together Peter Amberger and Dr. Klaus Zumwinkel
when Deutsche Post bought trans-o-flex.

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Magyar Posta – a service to be proud of?

Posted by | Mar 24, 2005 | |

Despite anecdotal evidence to the contrary, Magyar Posta claims it provides a good service, one that brought in a pre-tax profit of Ft5 billion (USD26.73 million) in 2004. Companies contacted by The Budapest Sun, however, tell a different story: one of sending invites out ever earlier or assuming they will go astray. Tamás Tomecskó, spokesman for Magyar Posta Rt, told The Budapest Sun that very few letters “go astray” and are delayed. “Last year we had some problems with our new mail processing and distribution in Budaörs, but there have been very few problems since then,” he said.

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